Small Log Conference March 26, Alicia D. Cramer President Westervelt Renewable Energy, LLC

Transcription

1 Small Log Conference March 26, 2015 Alicia D. Cramer President Westervelt Renewable Energy, LLC

2 A 130 year-old land resource organization committed to land stewardship and managing its resources for future generations, The Westervelt Company operates in multiple arenas and industries including: timber and natural resources, Southern Yellow Pine lumber, residential real estate, outdoor sporting lodges, wildlife management, mitigation banking, and renewable energy.

3 Evolution 1884 Company founded as Prairie States Paper Company in Marseilles, Illinois Relocates to Tuscaloosa, Alabama, and changes name to Gulf States Paper Corporation Initiates professional forestry program Becomes first industrial landowner to implement sustainable wildlife management practices Ceases manufacturing paper, focusing instead on paperboard and packaging Divests of paperboard and packaging business Launches Ecological Services as a business platform Changes name to the Westervelt Company Launches Renewable Energy business platform with Co- Gen project at Moundville, Alabama, sawmill Adds to Renewable Energy business with wood pellet plant in Aliceville, Alabama. Herbert Westervelt

4 Challenge: Diversify and Grow While Maintaining Stewardship Principles Preserve Restore Conserve Replenish California New Zealand Mississippi Mississippi Florida New Zealand

5 Challenge: Diversify and Grow

6 Branching Out

7 Moundville Cogeneration Facility [ green power ] The first renewable power project approved by the Public Service Commission for Alabama Power Biomass Fuel Bark, Shavings, Sawdust, Forest Residue, etc.

8 Wood Fuel Pellets [ reducing global emissions ] European Pellet Market Production & Consumption

9 Biomass-To-Energy Export Demand Projected to Utilize Surplus Pulpwood Supply

10 Avoiding High Demand Wood Baskets [ responsible development ]

11 Community Impact [ social responsibility ] Employment Direct hires Harvesting crews Truck drivers Economy Contractors Suppliers & service providers Local merchants Locally owned utilities New outlet for local forest owners Civic Funding for local fire departments Community involvement Environment Clean, safe operations

12 Aliceville Pellet Plant [ building block for the future ]

13 Report Card Aliceville Pellet Mill A B C D F Location Wood Basket Logistics Community Support Impact Work Force + Customer Satisfaction Production Specifications Budget

14 Wood Basket A

15 Logistics - A

16 Community Support - B

17 Community Impact - A

18 Trained Workforce D+

19 Customer Requirements - A

20 Customer Satisfaction Production - C

21 Challenges Looking at 2015 and Beyond Policy (U. S. and International) Perceptions regarding forestry Healthy logging industry

22 Policy Aspiration Set an agreed framework for governments to help deliver the benefits from bioenergy while minimizing risks.

23 Perception vs. Fact Growth In Standing Inventory Source: NAFO

24 Health of Logging Industry

25

26

27

28

29

30 PPI Logging Inflation (CPI) Diesel Heavy Equipment

31 Logger Profile U. S. Logging Businesses 8,300 Total Industry Employment (employees) 46,300 Annual Employee Wages Generated $430 mil Logging Capacity Reduction Since % - 20% Median Logger age (years) 53 Loggers Older than 51 Years 51% Average time in Business (years) 23 Average Equipment Age (years) Sources: Regional Cost Analysis and Indices for Conventional Timber Harvesting Operations. Final Report to the Wood Supply Research Institute, Center for Forest Business, The University of Georgia, Shawn Baker, Dale Greene, Tom Harris, and Richard Mei, May 5, Changes in Logging Firm Demographics and Logging Capacity in the US South, 2013 Council of Forest Engineering, W. Dale Greene, Samantha C. Marchman, Shawn A. Baker Logging Firm Succession and Retention, Forest Product Journal Vol 59, No. 6, Forest Products Society 2009, Shorna Broussard Allred 2011 Logging Business Survey: Big Squeeze, Timber Harvesting & Wood Fiber Operations Magazine

32 Alicia D. Cramer President, Westervelt Renewable Energy, LLC Ph.